Bank Reconciliation

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NAME : Neelesh Nanda

TOPIC : Bank Reconciliation

BATCH : 13 TH B

ROLL NO : KH08JUNMBA81

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Bank Reconciliation

  1. 1. <ul><li>NAME : Neelesh Nanda </li></ul><ul><li>TOPIC : Bank Reconciliation </li></ul><ul><li>BATCH : 13 TH B </li></ul><ul><li>ROLL NO : KH08JUNMBA81 </li></ul>
  2. 2. Bank reconciliation is the process of matching and comparing figures from accounting records against those presented on a bank statement. The balance of the accounting ledger should match to the balance of the bank statement. B.R.S. helps accounting firm to have an accurate view and also ensure that the company's bookkeeping is good.
  3. 3. Reasons for difference between the two records <ul><li>Cheques drawn but not yet presented to the bank. </li></ul><ul><li>Cheques received but not yet deposited in the bank. </li></ul><ul><li>Interest credited and not recorded in the organization's books. </li></ul><ul><li>Bank charges debited but not recorded in the organization's books </li></ul>
  4. 4. <ul><li>For example, cheques written near the end of August are deducted immediately on the company's books </li></ul><ul><li>But those cheques will likely clear the bank account in early September </li></ul><ul><li>Sometimes the bank decreases the company's bank account without informing the company of the amount </li></ul><ul><li>Also bank service charge might be deducted on the bank statement on August 31, but the company </li></ul><ul><li>will not learn of the amount until the company receives the bank statement in early September </li></ul><ul><li>From these two examples, you can understand why there will likely be a difference in the balance </li></ul><ul><li>on the bank statement vs. the balance in the Cash account on the company's books. It is also possible </li></ul><ul><li>(perhaps likely) that neither balance is the true balance. Both balances may need adjustment in order </li></ul><ul><li>to report the true amount of cash. </li></ul>
  5. 5. Advantages of BRS
  6. 6. <ul><li>Thank u </li></ul>

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